KOITO MANUFACTURING : Consolidated Earnings Report for the Second Quarter of Fiscal 2018

Consolidated Earnings Report for the Second Quarter of Fiscal 2018 [Japanese GAAP] October 26, 2017

Company Name: KOITO MANUFACTURING CO., LTD.

Stock Listing: First Section, Tokyo Stock Exchange

Code Number: 7276

URL: http://www.koito.co.jp

Representative Director: Hiroshi Mihara, President

Inquiries: Hideharu Konagaya, Senior Managing Director

Tel: [phone]

Filing of Quarterly Securities Report: November 2, 2017

Scheduled Payment of Dividends: December 5, 2017 Supplementary explanatory materials prepared: Yes

Explanatory meeting: Yes

(¥ millions are rounded down)

1. Consolidated Results for the Second Quarter of Fiscal 2018 (April 1, 2017 to September 30, 2017)

2. Consolidated Operating Results (¥millions; percentage figures represent year-on-year changes)

   Second Quarter	Net sales	Operating income	Recurring profit	Profit attributable to owners of parent
   Fiscal 2018	445,671 16.1%	49,688 25.0%	52,312 31.9%	29,156 27.2%
   Fiscal 2017	383,720 0.1%	39,748 22.7%	39,646 20.6%	22,929 61.8%

   Note: Comprehensive income or loss: September 30, 2017: ¥41,594 million (402.1%), September 30, 2016:¥ 8,284 million (623.7%)

   Second Quarter	Net income per share (¥)	Net income per share (diluted) (¥)
   Fiscal 2018	181.42	181.35
   Fiscal 2017	142.69	142.63

3. Consolidated Financial Position (¥millions)

4. Total assets	Net assets	Equity ratio (%)	Net assets per share (¥)
   September 30, 2017	626,464	400,137	58.7	2,287.24
   March 31, 2017	658,341	381,000	51.0	2,090.87

   Note: Equity: September 30, 2017: ¥ 367,630 million, March 31, 2017: ¥ 335,988 million

5. Dividends

6. Dividend per share (¥)
   First Quarter	Second Quarter	Third Quarter	Year End	Full Year
   Fiscal 2017	－	20.00	－	34.00	54.00
   Fiscal 2018	－	36.00
   Fiscal 2018 (forecast)	－	－	－

   Notes: 1. Revisions to recent dividend forecasts: Yes

   2. The dividend record date is March 31, as prescribed by KOITO's Articles of Incorporation; the dividend forecast for the March 31, 2018 is currently undecided.

   3. Forecast of Consolidated Results for Fiscal 2018 (April 1, 2017 to March 31, 2018)

   (¥million; percentage figures represent year-on-year changes)

   Net sales		Operating income		Recurring profit		Profit attributable to owners of parent		Net income per share (¥)
   Full year	822,000	△2.3%	97,000	4.8%	100,000	4.9%	71,000	25.2%	441.73

   Note: Revisions to recent consolidated business forecasts: Yes

   *Notes

7. Changes to important subsidiaries during the second quarter (changes in specified subsidiaries resulting in revised scope of consolidation): Yes

   Excluded: 1 company

   (Company name) Shanghai Koito Automotive Lamp Co., Ltd.

   (Note) For details, please refer to (4) Notes on Quarterly Consolidated Financial Statements (Changes to important subsidiaries during the second quarter) under 2. Quarterly Consolidated Financial Statements and Notes on page 10 of the supplementary materials.

8. Application of special accounting methods in the preparation of quarterly consolidated financial statements: None

9. Changes in accounting principles, accounting estimates and restatements

   ①Changes in accounting policies in conjunction with revisions to accounting standards: None

   ②Other changes: None

   ③Changes in accounting estimates: None

   ④Restatements: None

10. Number of shares issued (common stock)

Fiscal 2018, 2Q	160,789,436	Fiscal 2017	160,789,436
Fiscal 2018, 2Q	57,950	Fiscal 2017	95,791
Fiscal 2018, 2Q	160,712,556	Fiscal 2017, 2Q	160,693,772

①Number of shares issued (including treasury stock):

②Number of treasury stock:

③Average number of stock during the second quarter:

*This financial report is not subject to the audit procedure.

《 For Reference Only 》

Forecast of Non-consolidated Result for Fiscal 2018 (April 1, 2017 to March 31, 2018)

(¥millions; percentage figures represent year-on-year changes)

Net sales	Operating income	Recurring profit	Net income	Net income per share (¥)
Full year	335,000 12.5%	37,000 26.5%	55,000 20.3%	56,000 80.0%	348.41

Note: Revisions to recent non-consolidated business forecasts: Yes

*Explanations concerning proper use of business forecasts and other noteworthy matters (Notes on future assumptions)

The above forecasts are based on information available, and certain assumptions that are judged to be reasonable, at the time of the release of this report. KOITO is not promising that the Company will achieve these forecasts. Actual results could differ from forecasts due to a variety of factors.

(Supplementary materials for financial results)

KOITO is scheduled to have a financial results briefing for securities analysts and institutional investors on November 10, 2017. Supplementary materials to be distributed at this briefing will be made available on our website immediately after the briefing.

Table of Contents of Supplementary Materials

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1. Qualitative Information Concerning Quarterly Financial Statements and Other Matters………………………………. 2

2. Explanation Regarding Consolidated Operating Results…………………………………………………………… 2

3. Explanation Regarding Consolidated Financial Position…..……………………………………………………..… 2

4. Explanation Regarding Forecast of Consolidated Results for Fiscal 2018 and Other Future Projections………… 3

5. Quarterly Consolidated Financial Statements and Notes……………………………………………………………… 4

6. Quarterly Consolidated Balance Sheets…………………………………………………………………………… 4

7. Quarterly Consolidated Statements of Income and Comprehensive Income……………………………………… 6 Second quarter, for the six months ended September 30…………………………………………………………… 6

8. Quarterly Consolidated Statements of Cash Flows………………………………………………………………… 8

9. Notes on Quarterly Consolidated Financial Statements…………………………………………………………… 10(Going Concern Assumption) …………………………………………………………………………………… 10(Note Regarding Significant Changes in Shareholders' Equity)………………………………………………… 10(Changes to important subsidiaries during the second quarter) …………………………………………………… 10(Application of Special Accounting Methods in the Preparation of

10. Quarterly Consolidated Financial Statements) …………………………………………………………………… 10 (Segment Information)…………………………………………………………………………………………… 10

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